Wed, 03 Aug 1994

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) rallied yesterday following widely published reports on the bright outlook of the local market.

Most big stocks booked significant gains, pushing up the Composite Index to close 6.5 points higher at 459.23 from 452 on the previous day.

The narrower-based GTDBS-50 Index also increased to 110.2 from 108.45.

Securities dealers said that most local investors apparently became more confident due to the promising statements about the domestic market.

A senior investment advisor of the world's major bank was widely reported yesterday by local newspapers as saying that Indonesian stocks will still provide higher returns than bank deposits even though there will be another rise in interest rates.

He said the present sluggish market was temporary and he estimated that the Composite Index would rise back to 500 points by the end of this year, 550 points early next year and to 600 points in the first semester of 1995.

The active trading pushed up prices of large shares such as Bank International Indonesia (+200), Barito Pacific (+150), Astra International (-Rp 250), Gadjah Tunggal (+100), Gudang Garam (+200) and H.M. Sampoerna (+100).

Top losers were Inter Pacific Bank (-300), Sumarecon Agung (- 200) and Bakrie Sumatra Plantation (-125).

Trading volume, however, dropped to 16.09 million shares worth Rp 68.29 billion (US$32.5 million) yesterday from 24.55 million shares worth Rp 87.33 billion on Monday. (hen)